QUOTE(Boon3 @ Jun 26 2020, 03:14 PM)
Since 2015, BAT dividends totals...
[attachmentid=10524227]
2015 -- 312.00
2016 -- 278.00
2017 -- 169.00
2018 -- 155.00
2019 -- 118.00
2020 -- 50.00 **
** BAT dividend for 2020 so far is half year. Assuming same rate of payout, we are looking at total dividend of only 100.00 **
** clearly the dividends is declining like hell! **
from 2015 to currently, BAT has paid 1082.00 in dividend (ie rm10,820.00 per 1,000 shares)
.....
Price of BAT today is 10.76.
if one purchase or invested in BAT for its dividends about 5 years ago, the price of BAT on 23rd June 2015 is 60.80.
dividends collected is 1082
price today is 10.76
which means one is looking at a holding a loss of 39.22 (60.82-10.82-10.76) !!!!!
** if one purchase on 23rd June 2015, one collected less 176.00 in dividends, since these dividends were paid before June 2015!! **
so do be careful, do not simply invest just because of dividends !!! Dividend investing has its fair share of risk!!!!
invested ~ 60k... for dividends... now losing 39k cos the share price has collapsed!!!
Quote: "Dividend investing has its fair share of risk!!!!"[attachmentid=10524227]
2015 -- 312.00
2016 -- 278.00
2017 -- 169.00
2018 -- 155.00
2019 -- 118.00
2020 -- 50.00 **
** BAT dividend for 2020 so far is half year. Assuming same rate of payout, we are looking at total dividend of only 100.00 **
** clearly the dividends is declining like hell! **
from 2015 to currently, BAT has paid 1082.00 in dividend (ie rm10,820.00 per 1,000 shares)
.....
Price of BAT today is 10.76.
if one purchase or invested in BAT for its dividends about 5 years ago, the price of BAT on 23rd June 2015 is 60.80.
dividends collected is 1082
price today is 10.76
which means one is looking at a holding a loss of 39.22 (60.82-10.82-10.76) !!!!!
** if one purchase on 23rd June 2015, one collected less 176.00 in dividends, since these dividends were paid before June 2015!! **
so do be careful, do not simply invest just because of dividends !!! Dividend investing has its fair share of risk!!!!
invested ~ 60k... for dividends... now losing 39k cos the share price has collapsed!!!
One of the BIGGEST danger is looking at the quick snapshot of a company's financial. For BAT case, the quick snap will show that its dividend yield is more than 10%!!!
The 118 sen is correct BUT it's based on the trailing twelve months... and with BAT rate of dividends falling rapidly, the 118 sen looks optimistic...
So obviously, one would ask "Mana boleh bro? More than 10% la, cannot lose money one bro... "
but with BAT earnings declining rapidly, its dividend declined rapidly too.... and with it, it's share price rolled down the hill.......
so unless BAT earning and dividend improve for the better... perhaps it's better not to be blinded and seduced by the current Dividend Yield...
Jun 26 2020, 04:47 PM

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